The charming town of Ajijic (Ah-he-he-ic), with a population of 6,000, dates from the 1500s and is home to a majority of expatriate retirees, as well as to many artists and craftsmen.  Cobblestone streets and open-air stores surround a small town square where merchants may wander off in search of change if you present any large ($10) bills.  There are some excellent restaurants here, and many amenities can be found, but few will rival what you have at home.  Instead, you will feel as though you have stepped back in time 30 years or more.  The town of Chapala is just down the road and is where residents will find most banks, larger markets and more services.

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Real estate prices have risen during the last 10 years, but affordable housing is still one of the primary drawing cards of this region.  In areas outside of Ajijic or in one of the smaller towns, prices can be downright cheap.  Small, rustic 2-3 bedroom homes can be had for $40,000, and rents can be found for $400/month.  This doesn't buy a lot of charm or luxury, but it is an option for those on a budget.

It is quite possible to find a nice 2-3 bedroom home with tile floors, a garden, servant's quarters and off-street parking for under $100,000.   Comfortable condominiums can be had in the $50,000 range and up.   $180,000 will fetch a lovely 3 bedroom, 2 bath home with mountain and Lake views, a large garden, arched doorways, tile floors, fireplace, storage area, stables, workshop and two car carport.  There are some beautiful gated communities (prices vary), and if you can spend $300,000 or more, you will most likely be living on the side of a hill, sipping Margaritas next to your pool while overlooking the beautiful Lake below.  In short, real estate prices range from the very affordable to about one million dollars (this will get you a spiffy palace), but most single family homes seem to be in the $100,000 to $200,000 range.  It is easy to pay this in the States, of course, but in Lakeside, it buys so much more.

Rentals are also plentiful, particularly during the spring and summer months when many Canadian "snowbirds" return home.  This is a good time to come check out the area.  The Lake's water level is low, but the summers really are not hot (low 80s), thanks to the elevation, and the rains come and go by late afternoon, leaving the area fresh and green.  While some expatriate retirees only stay here during the winter months, many live here year-round, either staying on a tourist visa (which needs to be renewed at a border every six months) or by applying for an FM-3 visa.    

The best place to find out about rental properties is at the Lake Chapala Society, an organization that is the networking hub for Lake Chapala's expatriate retirees.  Located in Ajijic, the Society is where everyone gathers for health screenings, yoga classes, strolls through the gardens, legal help, Spanish lessons, socializing, orientation to the area and a slew of other activities (dues are roughly $35 a year).  Located next to the small bookstore is the bulletin board where rentals and homes for sale are posted.   Rental homes can be found for $400/month or less, depending on location, but a 2-3 bedroom home in a nice gringo or mixed neighborhood in Ajijic can be had for $600 a month or so.  This most likely will include all furnishings, including kitchen utensils, and perhaps a gardener or maid.  Many homes are built from concrete (there are no building codes in Mexico) and practically none have air conditioning, which really is not a problem.  Do ensure, however, that a phone is already in the home, or you may never get one.